|
 In
the absence of inflation, B-1 costs have changed very little
since the program went on contract in 1970. The initial program
estimate of $9.9 billion is now $11.1 billion - an 11 percent
increase or about 2 percent a year. Inflation through calendar
year 1976 has added $5.7 billion to the total program costs,
making it $16.8 billion in 1976 dollars. If inflation is
forecasted through program completion in the mid-1980s, total
program cost is estimated to reach $21.6 billion in "then year"
dollars.
The following tables show current program cost estimates in
"no-inflation" 1970 dollars, current 1976 dollars, and in
forecasted "then-year" dollars. (Procurement unit
cost is the average cost to produce an aircraft
(airframe, engines, avionics and other government-furnished
equipment), the peculiar cost to deploy one aircraft (ground
support equipment, training equipment, etc.) and the cost of
initial spares. Program unit cost includes the development cost
amortized over the total number of aircraft (244) to be built.)
| Program Cost Estimates |
|
$70 |
|
$76 |
|
$
Then Year |
| R&D |
|
2.91B |
|
3.94B |
|
4.15B |
| Production |
|
8.19B |
|
12.85B |
|
17.47B |
| Total |
|
11.10B |
|
16.79B |
|
21.62B |
|
|
| Unit Cost Estimates |
|
|
|
|
|
|
|
Procurement Unit |
|
34.1M |
|
53.5M |
|
72.8M |
| Program Unit |
|
45.5M |
|
68.8M |
|
88.6M |
The bulk of increases to the Air Force B-1 cost estimate (some
89 percent) has been due to the effects of economic inflation.
Forty-nine percent of the total program cost estimate is inflation.
|
